Microsoft making almost $19 bn from commercial cloud

cloud market

Microsoft has made almost $19 billion from the commercial cloud market, the company said in an earnings announcement this week. 

The Windows OS company said its commercial cloud annualised revenue run rate exceeds $18.9 billion.

Satya Nadella, CEO at Microsoft, said: “Innovation across our cloud platforms drove strong results this quarter.

“Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge.”

Some of the highlights for company during the quarter ending June 30, 2017 are:

  • Revenue was $23.3 billion GAAP, and $24.7 billion non-GAAP
  • Operating income was $5.3 billion GAAP, and $7.0 billion non-GAAP
  • Net income was $6.5 billion GAAP, and $7.7 billion non-GAAP
  • Diluted earnings per share was $0.83 GAAP, and $0.98 non-GAAP

Revenue in what Microsoft calls “Intelligent Cloud” was $7.4 billion and increased 11 per cent (up 12 per cent in constant currency), with the following business highlights:

Server products and cloud services revenue increased 15 per cent (up 16 per cent in constant currency) driven by Azure revenue growth of 97 per cent (up 98 per cent in constant currency)

Enterprise Services revenue decreased 3 per cent (down 1 per cent in constant currency) with declines in custom support agreements offset by growth in Premier Support Services

Another interesting point in Microsoft’s earnings report was the performance of its Office products – which includes Word and PowerPoint – and its business process applications.

Microsoft said revenue in productivity and business processes was $8.4 billion and increased 21 per cent (up 23 per cent in constant currency), with the following business highlights:

  • Office commercial products and cloud services revenue increased 5 per cent (up 6 per cent in constant currency) driven by Office 365 commercial revenue growth of 43 per cent (up 44 per cent in constant currency)
  • Office consumer products and cloud services revenue increased 13 per cent (up 13 per cent in constant currency) and Office 365 consumer subscribers increased to 27 million

Dynamics products and cloud services revenue increased 7 per cent (up 9 per cent in constant currency) driven by Dynamics 365 revenue growth of 74 per cent (up 75 per cent in constant currency)

And while many may have questioned its $26 billion purchase of the social networking website for professionals and executives, LinkedIn contributed revenue of $1.1 billion during the quarter.